Kelp DAO Introduces EigenLayer Unpause Queue to Streamline LST Restaking Process

Kelp DAO Introduces EigenLayer Unpause Queue to Streamline LST Restaking Process

PANAMA CITY, PANAMA – 08/02/2024 – (EMWNews) – Kelp DAO, a prominent platform specializing in liquid staking tokens (LSTs), has made a groundbreaking announcement today regarding its EigenLayer Unpause Queue, which enables users to queue their assets in advance of the EigenLayer protocol cap reopening scheduled for February 5th.

The demand for LST restaking has soared in popularity over the last six months, resulting in an unprecedented surge in demand that has far surpassed the available supply due to the restaking caps imposed by EigenLayer. With the EigenLayer restaking window reopening once again, there’s anticipation in the air. However, despite the absence of a financial cap this time, EigenLayer has introduced a specific four-day window for restaking, posing challenges for users who may struggle with timing constraints and high Ethereum gas prices.

To address this issue and provide a solution, Kelp DAO has introduced the EigenLayer Unpause Queue, offering users the opportunity to secure their place in line for automatic restaking. When the pause lifts on February 5, 2024, Kelp will initiate the process of programmatically depositing assets to EigenLayer, ensuring users’ assets are queued for restaking attempts as soon as the window opens. This automated process significantly speeds up the deposit process compared to manual deposits, greatly improving users’ chances of successful restaking of their LSTs, while potentially saving on gas costs, which have historically soared to $90-$120 per transaction during EigenLayer deposit windows.

The Unpause Queue is now open for deposits of three key LSTs: ETHx by Stader Labs, sfrxETH by Frax Finance, and stETH by Lido Finance.

By depositing LSTs with Kelp DAO, users have the opportunity to mint rsETH, marking a significant milestone as the first Liquid Restaked Token (LRT) launched on the Ethereum mainnet. rsETH addresses a crucial need by reintroducing liquidity into restaked LSTs.

As of today, the total value of assets locked on Kelp already exceeds $266 million, with over 118,000 ETH restaked and 15,000+ rsETH holders. Impressively, more than 10% of all EigenLayer deposits during the last EigenLayer cap raise were made through Kelp in less than 15 days since its launch.

Powered by Stader Labs, ETHx deposits on Kelp (and directly on EigenLayer) unlock an additional 1 million EigenLayer Points, making it the only way in the ecosystem to earn extra EigenLayer Points on top of regular ones accrued by users.

“The Unpause Queue process is straightforward. We anticipate a significant surge in demand once the EigenLayer caps are lifted on February 5. In previous cap adjustments, many users were excluded due to timing constraints,” said Dheeraj Borra, founding contributor at Kelp. “The Unpause Queue allows users to queue LSTs in advance so they can be deposited as soon as the window opens. As an added bonus, users who restake with the Unpause Queue receive both EigenLayer Restaked Points and 100k bonus Kelp Miles for every rsETH minted, enabling them to maximize rewards.”

EigenLayer is an Ethereum restaking protocol that enables users to use their staked ETH as crypto-economic security across multiple protocols other than Ethereum in exchange for fees and other rewards. Restaking on EigenLayer is available for both natively staked ETH and LSTs like stETH, rETH, cbETH, LsETH, ETHx, sfrxETH, and others.

LSTs are synthetic counterparts of staked ETH that are equal in quantity and value to their underlying tokens. Initially, LSTs were created to maintain liquidity for locked ETH tokens, allowing holders to use them in DeFi or redeem them for their underlying assets. However, restaking essentially enables ETH holders to “double dip” by staking LSTs as well, resulting in additional passive revenue streams.

Meanwhile, rsETH can be utilized in DeFi or redeemed for their underlying tokens, allowing holders to restake their LSTs while maintaining liquidity. Holders of rsETH can explore a host of DeFi opportunities, with rsETH already integrated into DEXs like Balancer, Uniswap, and Curve. Across all three DEXs, users receive 3x Kelp Miles and Eigenlayer Points until the end of February and 2x Kelp Miles plus EigenLayer Points starting on March 1st. Kelp Miles will be calculated based on total Pool TVL instead of just rsETH.

In the coming weeks, new DeFi opportunities with rsETH are expected to go live, offering holders additional rewards for participating in the space. For example, rsETH pools are already live on Pendle with $80M+ TVL, Penpie with $35M+ TVL, and Equilibria in less than 7 days of launch.

Starting on February 5th, all wallets holding rsETH tokens will begin receiving EigenLayer Points and Kelp Miles daily to enhance their access to DeFi and L2, regardless of how the rsETH is acquired or used. This includes minting rsETH on Kelp, purchasing from DEXs, bridging to supported L2s, providing liquidity across DeFi protocols, or transferring assets between addresses. Currently, rsETH is the only LRT for LSTs on the Ethereum mainnet, audited by SigmaPrime and Code4rena, and will also be the first to introduce DeFi use cases for LRTs.

SOURCE: Kelp DAO

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